Faroe Petroleum announced it has started drilling operations at its Brasse exploration well 31/7-1 in the Norwegian North Sea.
If drilling is successful, the Brasse prospect could be tied-back to the Brage facilities or to other nearby installations.
“On a post-tax basis, the well is expected to cost Faroe less than £2 million”, Faroe Petroleum Chief Executive Officer Graham Stewart, said.
North Sea Well Spudded By Faroe Petroleum
The independent oil and gas firm holds a 50% stake in the Brasse exploration well, PL740 license, while Core Energy holds the remaining 50%. The well is located immediately south of the producing Brage oil field, where Faroe holds a 14.3% participation.
The well will target the Jurassic aged sandstones in a four-way-dip-closed structure, with a total vertical depth of around 9,022 feet (2,750m), the company informed.
The site is located at a water depth of 387 feet (118m) and the well will be drilled using the semi-submersible Transocean Arctic rig.
“This is a near field exploration target which provides significant upside potential to Faroe, in one of our core areas”, Stewart explained.
Growing Portfolio Amidst Sector Crisis
Faroe Petroleum recently outperformed expectations in its North Sea portfolio after it announced a 30% cut in its operating costs, mainly due to “a combination of higher volumes, improved cost efficiencies and a weaker Norwegian krone”, the company informed at the time.
Overall, the company plans to participate in three wells this year, located in Norway. The first was spudded in January, but there was no discovery.
Brasse will be the next well to be drilled, followed by a new prospect on the North Flank of Njord.
Through the year, Faroe plans to increase its producing portfolio through a combination of maturing existing assets and new opportunities.
“These are undoubtedly challenging times, but times of uncertainty create opportunity”, the CEO said.